US Energy Systems Enters Joint Venture with EIC Electricity of Switzerland for Biomass

U.S. Energy Systems, Inc. (USE) and EIC Electricity SA announced recently that subsidiaries of the two companies have formed a joint venture to invest in a newly formed Swedish district energy group that is a provider of biomass-fueled energy.

WHITE PLAINS, New York 2002-03-13 [] USE and EIC are investing US$13 million in the 51percent / 49 percent joint venture, which is financing the new Swedish group. A Swedish bank is providing US$64 million of additional financing. As a part of the transaction, the newly formed Swedish group has acquired seven operating projects and several late-stage development projects. The projects currently provide biomass-fueled energy to the equivalent of 30,000 households in ten communities outside of Stockholm, Sweden. “This investment is a strategically important step forward for U.S. Energy Systems’ growth”, said Goran Mornhed, president and chief operating officer of U.S. Energy Systems. “We gain a strong joint venture partner in EIC and a European business platform for growth in an expanding market. The project is consistent with the new initiatives of the European Union, which promote environmentally responsible energy production to reduce air pollution and other costs to society.” “The investment in the Scandinavian district energy market provides us with a platform for sustainable growth in Northern Europe,” said Dominique Candrian, CEO of EIC. “This transaction is an important stepping-stone into the green energy market for EIC and we are excited about the synergistic joint venture with U.S. Energy.” The new energy group will be headed by Goran Ernstson, former chief operating officer of Birka Varme, one of the largest district energy providers in Europe, where, among other functions, he was responsible for district energy operations in Stockholm.
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